Section 4: Group governance system

The participating and parent undertakings referred to respectively in the second and third paragraphs of article L. 356-2 shall review the written policies referred to in the third paragraph of article L. 356-18 at least once a year. These policies are subject to the prior approval of the Board of Directors or the Supervisory Board as the case may be. They are adapted to take account of any significant change…

The risk management system referred to in Article L. 356-19 includes the strategies, processes and information procedures necessary to identify, measure, control, manage and report, on an ongoing basis, the risks to which the Group is or could be exposed, as well as the interdependencies between these risks. This system is integrated into the group’s organisational structure and decision-making procedures and is duly taken into account by the persons who…

The risk management system covers the risks to be taken into account in the calculation of the Solvency Capital Requirement in accordance with Articles R. 356-19 to R. 356-22, as well as risks which are not, or not fully, included in this calculation. This system covers, as a minimum, underwriting and provisioning, asset-liability management, investments, in particular in financial contracts, liquidity and concentration risk management, operational risk management, as well…

I.- With regard to asset and liability management, the participating and parent undertakings referred to respectively in the second and third paragraphs of Article L. 356-2 regularly assess the sensitivity of the prudential technical provisions and the group’s own funds to the assumptions underlying the extrapolation of the relevant risk-free interest rate curve referred to in Article R. 351-3. II – Where the equalisation adjustment referred to in Article R….

With regard to investment risk, the participating and parent undertakings referred to respectively in the second and third paragraphs of Article L. 356-2 must be able to demonstrate that they comply at group level with the provisions of Chapter III of this Title.

The Group risk management function referred to in Article L. 356-18 is structured in such a way as to facilitate the implementation of the risk management system referred to in Article L. 356-19.

Where external credit assessments are used to calculate prudential technical provisions and the Solvency Capital Requirement, the participating and parent undertakings referred to respectively in the second and third paragraphs of Article L. 356-2 shall verify, as part of their risk management at group level, the appropriateness of these assessments, using additional assessments where necessary.

The risk management function referred to in Article R. 356-38 of groups which use a partial or full internal model approved in accordance with Articles R. 356-20 to R. 356-20-3 to calculate the group’s solvency covers the tasks of designing, implementing, testing and validating the internal model, monitoring the documentation of this internal model and any changes made to it, analysing the performance of this model and producing summary reports…

The internal risk and solvency assessment referred to in Article L. 356-19 shall cover at least: a) The overall solvency requirement, taking into account the specific risk profile, approved risk tolerance limits and business strategy of the group; b) Ongoing compliance with capital requirements at group level; c) The difference between the group’s risk profile and the assumptions underlying the Solvency Capital Requirement calculated in accordance with Articles R. 356-19…

I.- In order to assess the overall solvency requirement referred to in Article R. 356-41, the participating and parent undertakings referred to respectively in the second and third paragraphs of Article L. 356-2 shall implement procedures which are proportionate to the nature, scale and complexity of the risks inherent in the group’s business and which enable them to identify and assess the risks to which the group is exposed, or…